Bitcoin and other cryptocurrencies are rising significantly today, following the announcement by the US Treasury Department that President Joe Biden’s executive order on crypto-market is imminent, which is seen as having a positive attitude towards digital assets.
According to CoinDesk data, Bitcoin was trading at $41,584.21, up nearly 9%
The rally began late Tuesday , after the Treasury Department released details and a statement online in response to an impending US presidential executive order on cryptocurrencies. Shortly thereafter that statement was removed.
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Reuters and other news outlets reported earlier this week that a Biden executive order on cryptocurrencies was imminent.
The Treasury Department statement, which was withdrawn, said the executive order provides for a comprehensive approach to digital asset policy and that government agencies will coordinate their work.
Traders are still waiting for the final executive order, but the Treasury statement, despite being withdrawn, was enough to boost optimism.
“The leaked Treasury statement was welcomed by the cryptocurrency market as it seems to focus on developing the industry rather than imposing unrealistic regulations,” Yuya Hasegawa, a market analyst at Japanese cryptocurrency exchange Bitbank, told CNBC.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, called the executive order a “constructive approach to targeted regulation of cryptocurrencies.”
While countries like China have tried to eliminate cryptocurrency transactions, others like El Salvador have embraced it. However, the US does not currently have a framework for the development and regulation of cryptocurrencies.
Last year, cryptocurrency exchange Coinbase said the US should create a new regulatory authority to oversee the digital asset market.
The presidential decree
As Reuters reported, later this week US President Joe Biden is expected to sign the long-awaited executive order instructing the Justice Department, Treasury Department and other agencies to study the legal and economic implications of creating a digital currency central bank.
The publication recalls that the White House last year said it was considering broad oversight of the cryptocurrency market – including an executive order – to address the growing threat of ransomware and other cybercrimes.
Biden’s order sets a 180-day deadline for a series of reports on “the future of money” and the role cryptocurrencies will play in the evolving landscape.
“We could see a significant change in policy in 180 days. This is a potential step towards the creation of a digital central bank currency,” the source said.
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